Buying a Home in 2026? Make Sure You Know the Real Costs.

Whether you’re buying in Daphne, Fairhope, or Spanish Fort, there’s more to a home purchase than the down payment and mortgage.

Most first-time buyers — and even move-up buyers — underestimate the true cost of buying a home.

Here’s the clear, honest breakdown of the hidden costs you’ll face in 2026 and how to plan for them so there are no surprises at closing.

⭐ 1. Earnest Money Deposit

Think of this as a “good faith” payment to show the seller you’re serious.

Typical Eastern Shore Amounts:

• $1,000 – $3,000 for homes under $400K

• Higher for competitive listings

✔ This money goes toward your closing costs or down payment.
✔ You do not lose it unless you break contract terms.

⭐ 2. Home Inspections

Inspections are optional — but skipping them is a bad idea.

Average Costs:

• General inspection: $350–$500

• Termite/WDO: $100–$150

• Sewer, well, or specialty inspections: If applicable

Even brand-new homes in Daphne and Spanish Fort need inspections — new construction isn’t immune to mistakes.

⭐ 3. Appraisal Fee

If you're getting a mortgage, your lender orders an appraisal.

Cost:

• $550–$700

• Paid upfront (usually before closing)

⭐ 4. Closing Costs (The Big One)

This is where most buyers are caught off guard.

In Alabama, expect:

2–4% of the purchase price depending on lender, loan type, and rate.

For example:

• On a $350,000 home, closing costs = $7,000–$14,000

What closing costs include:

• Lender fees

• Title company fees

• Prepaid taxes

• Prepaid insurance

• Recording fees

• Attorney fees

Builder Incentive Tip:

New construction builders on the Eastern Shore often pay:
$5,000–$10,000+ toward closing costs
when using their preferred lender.

⭐ 5. Moving Costs

Not fun, definitely not cheap.

Expect:

• Local move: $600–$1,200

• Out-of-state move: $2,000–$6,000
  Depending on distance, size, and movers.

⭐ 6. Immediate Home Expenses After Closing

Most buyers don’t budget for:

• Furniture

• Paint and small upgrades

• Blinds (new builds never include these)

• Lawn equipment

• Appliances not included (think fridge/washer/dryer)

New construction especially has move-in costs buyers overlook.

⭐ 7. HOA Fees

Many Eastern Shore neighborhoods have an HOA.

Typical Annual Fees:

• $300–$1,200/year
  Higher if community includes:

• Pools

• Clubhouse

• Fitness center

• Gated entry

⭐ 8. Property Taxes

Baldwin County property taxes are low relative to most states — but still worth planning for.

Typical Annual Taxes:

• $900–$1,800 for average-priced homes

• $2,000–$5,000+ for Fairhope luxury properties

Most buyers pay taxes monthly through escrow.

⭐ 9. Homeowners Insurance

Insurance rates have increased nationwide.

Typical Ranges:

• $1,800–$3,000/year depending on size and age of home

• Newer homes are often cheaper

Flood insurance may also be required depending on location.

⭐ How to Avoid Buyer Surprises in 2026

Here’s how buyers stay financially confident:

✔ Get a full closing estimate from your lender upfront
✔ Have your agent (me) estimate ALL costs — not just mortgage numbers
✔ Avoid homes with unclear HOA rules
✔ Always get inspections
✔ Plan for move-in expenses

Buying a home should feel exciting — not overwhelming.

⭐ Want a Clean Breakdown of What Your Real Costs Would Be?

Whether you’re buying in Daphne, Spanish Fort, or Fairhope, I’ll build you a:

• Complete cost breakdown

• Monthly payment estimate

• Closing cost estimate

• New construction incentive comparison

→ Get Your 2026 Homebuyer Cost Guide